Dodd-Frank Act Brings Private Fund Transparency

As part of the Dodd-Frank Wall Street Reform and Consumer Protection Act, registered investment advisors must now disclose more information about the private funds they advise and manage.* This new information gives us a clearer picture both of advisors and of the funds they manage.

State Street Bank and Trust is the new leader among private fund administrators. Their acquisition of Goldman Sachs Administrative Services on October 15, 2012, caused them to pull ahead of CITCO as the largest private fund administrator. State Street is now one of the top five administrators for all seven types of private funds (see chart).

Among private funds, Hedge Funds are most prevalent, with a 37.3% share of the market. Private Equity funds follow closely, with a 31.3% share. Unclassified Funds and Venture Capital Funds are a distant third and fourth place, with 10.8% and 10.5%, respectively.

Further analysis reveals the top administrators for each fund type. See below for the top ten administrators for all seven types of private funds.

* From form ADV – Filed since November 1, 2011